Bitcoin (BTC) Must Make It Past This Threshold To Bounce Back
The United States just released the Employment Situation Summary, which describes the present state of the American labor market. Bitcoin, the dominant crypto currency on the market, is banking on the freshly disclosed data for a possible bear market departure.
Bitcoin has struggled to maintain its value inside the critical $20,000 level. Despite this, investors have elected to HODL over the forthcoming crypto winter. Over 62% of addresses with the currency have not been sold in the past year. This could suggest that investor sentiment as a whole is mixed.
Despite the fact that some investors elected to continue holding the currency, 32% of investors chose to sell the currency after holding it for between one and 12 months, while 6% sold their currency after holding it for only one month.
Many Believe Bitcoin Will Recover
While investor mood has been extremely volatile, the large proportion of investors who opted to hold indicates that many continue to believe Bitcoin will recover. This may be the case now, as Uncle Sam has provided a breakdown of the total employment picture in the United States.
Since the release of the jobs report, the Bitcoin market has gained minimally. Coingecko reports that the price of Bitcoin at the time the report was published was $20,060.85.
This reasonably large price increase from the early morning price of $19,632.46 was, however, unavoidably lost throughout the course of the day.
The Crucial $25K Price Point
Even if the price eventually fell after the study, Kitco has just produced a report that identifies the potential price point to end the bear market. The report’s author, Rajan Dhall, estimated a price point of $25,066 for a total Bitcoin recovery.
According to Rajan:
“Bitcoin appears to be trapped in a rut, but the good news is that the psychological threshold of $20,000 has held for some time. After the bear flag formation was broken on August 19, it would have appeared from a purely technical analysis standpoint that the decline would continue.”
Rajan said that a rally higher is possible if the bulls can hold above that zone, but for now the consolidation low around $17,567 is the level to monitor.
This current research along with the relatively favorable employment picture in the United States may indicate an impending rally.
However, investors are still warming up despite the current crypto winter.
Crypto total market cap at $950 billion on the weekend chart | Source: TradingView.com Featured image from MARCA, chart from TradingView.com